List of MBS Edits

Fatal Edits

Error Message

Definition

Troubleshooting

Current security balance must be ≤ beginning security balance

The current security balance is greater than the beginning security balance.

Calculate current security balance by reducing the beginning balance by the principal paydown. If pool is interest only, current security balance must be equal to beginning security balance.

Current security balance not accepted; same as beginning security balance

The current security balance is equal to the beginning security balance.

Calculate current security balance by reducing the beginning balance by the principal paydown.

Pool has matured

The maturity date of a pool has been reached; however, the pool is not being paid off.

Verify maturity date of the security. Enter zero security balance.

Unscheduled principal cannot be less than zero

Unscheduled principal has been reported as a negative number. It must be zero or greater.

Enter unscheduled principal greater than or equal to zero (-$.99 if new pool)

Unscheduled principal not allowed for defeasance pool

Unscheduled principal was reported for a defeasance pool.

Remove unscheduled principal for defeasance loans and adjust current security balance.

Severe Edits

Error Message

Definition

Troubleshooting

Current security balance not accepted: balance increase incorrect

For a negative amortization pool. The current security balance has increased; however, the negative amortization amount is less than the balance increase.

Verify the current security balance and the amount of negative amortization.

Current security balance should not change; Principal paydown not expected

For an interest-only pool. The current security balance should be equal to the beginning security balance, unless unscheduled principal is reported.

Check loan-level data for commencement of amortization. Verify the current security balance and unscheduled principal.

Current security balance too high

The current security balance is higher than the expected balance calculated by Fannie Mae.

Verify scheduled principal and unscheduled principal.

Current security balance too low

The current security balance is lower than the expected balance calculated by Fannie Mae.

Verify scheduled principal and unscheduled principal.

Negative amortization amount cannot exceed projected interest

For a negative amortization pool. The increase in the current security balance is greater than the interest amount.

Verify the negative amortization amount.

Pass-through rate greater than maximum accrual rate

For ARM pool. The reported pass-through rate is greater than the maximum accrual rate calculated by Fannie Mae.

Verify the pass-through rate calculation.

Pass-through rate less than minimum accrual rate

For ARM pool. The reported pass-through rate is less than the minimum accrual rate calculated by Fannie Mae.

Verify the pass-through rate calculation.

Pass-through rate outside of tolerance

For ARM pool. The reported pass-through rate is not within acceptable range of the Fannie Mae projected rate.

Verify the pass-through rate calculation.

Pool servicer loan count cannot be zero

There are no loans in the pool.

Verify all loans paid off in the prior month. If the loans paid off, report zero current security balance. If the loans did not payoff, contact your Multifamily Business Analyst.

Prepayment is not allowed during lockout period

Unscheduled principal was reported for a pool with a lockout term.

Verify the terms of individual loans to ensure compliance with lockout period.

Scheduled or unscheduled principal not reflected in principal paydown

The current security balance is not reduced by the sum of Fannie Mae projected principal and the reported unscheduled principal.

Verify scheduled principal and unscheduled principal.

Unscheduled principal cannot be zero

The pool is being paid off with a current security balance of zero; however, no unscheduled principal has been reported.

Confirm payoff, then enter unscheduled principal.

Unscheduled principal not equal to principal paydown

For an interest only pool. The unscheduled principal must be equal to the principal paydown.

Verify unscheduled principal.

Unscheduled principal without principal paydown

For an interest-only pool. The current security balance has not been paid down, but unscheduled principal has been reported

Verify unscheduled principal. If correct, reduce the current security balance by the unscheduled principal amount.

Yield Maintenance > 0 but Unscheduled principal = 0

Yield maintenance is being reported without unscheduled principal.

Verify the amount of yield maintenance due. If correct, then enter unscheduled principal.

Warning Edits

Error Message

Definition

Troubleshooting

Current security balance has large principal paydown

The current security balance reflects a large percentage of the pool being paid down.

Verify the principal paydown.

Negative amortization amount appears high

For a negative amortization pool. The negative amortization amount is higher than the Fannie Mae-calculated estimate.

Verify the current security balance and the amount of negative amortization for each loan.

Negative amortization pool has large paydown

For a negative amortization pool. The pool is now positively amortizing. Ensure that negative amortization at the loan level is handled properly.

Verify the individual loans with negative amortization.

Pool is being paid off

A security balance of zero has been reported

Verify that the loans in the pool have paid off.

Pool is projected to pay off

Fannie Mae’s projected security balance is zero; however, the current security balance is greater than zero.

Verify payoff status. If paid off, enter zero security balance.